2. On February 1, 2019 Macklin Corporation issued 5% 10-year bonds with a face value of $50,000,000 to yield 4%. Interest is paid on July 1 and January 1, with any premiums or discounts amortized on the effective interest method. Joseph Corp. purchased $1,000,000 of the bonds, at issue.

Record the following entries for 2019:

• issuance of the bonds by Macklin Corporation

• the purchase of the bonds by Joseph Corp.

• interest expense on December 31 for Macklin Corporation

• interest revenue on December 31 for Joseph Corporation